System and method for encoding information in magnetic stripe format for use in radio frequency identification transactions

ABSTRACT

A transaction device system is associated with a transaction device proxy account identifier, which may be stored in a database on the transaction device system. The proxy transaction device identifier may be stored on the database in any conventional merchant recognizable format. Additionally, the proxy transaction device identifier may be associated with a transaction account identifier for use in completing a transaction. The proxy transaction device identifier may include at least a first portion which corresponds to a portion of the transaction device identifier. The first portion of the proxy transaction device identifier may be segmented into proxy fields where a first segment includes a portion of a transaction account data set, and a second segment has encoded therein an account provider desired information. The proxy account identifier segments are undetectable by receiving systems such that the proxy account identifier emulates a merchant recognizable data transfer format. The account provider system may receive the proxy account identifier and uses the first portion of the transaction device identifier in a predetermined algorithm to reassemble the transaction device identifier for use in transaction completion.

RELATED APPLICATIONS

This invention is a continuation of, and claims priority to, U.S. patentapplication Ser. No. 10/810,473, entitled “SYSTEM AND METHOD FORENCODING INFORMATION IN MAGNETIC STRIPE FORMAT FOR USE IN RADIOFREQUENCY IDENTIFICATION TRANSACTIONS,” filed on Mar. 26, 2004. The '473invention is a continuation-in-part of, and claims priority to U.S. Pat.No. 7,239,226, entitled “SYSTEM AND METHOD FOR PAYMENT USING RADIOFREQUENCY IDENTIFICATION IN CONTACT AND CONTACTLESS TRANSACTIONS,”issued on Jul. 3, 2007 (aka U.S. patent application Ser. No. 10/192,488,filed on Jul. 9, 2002), which itself claims priority to U.S. ProvisionalPatent Application No. 60/304,216, filed Jul. 10, 2001. The '473invention is also a continuation-in-part of and claims priority to U.S.patent application Ser. No. 10/340,352, entitled “AUTHORIZING PAYMENTSUBSEQUENT TO RF TRANSACTIONS,” filed Jan. 10, 2003, which itself claimspriority to U.S. Provisional Patent Application No. 60/396,577, filedJul. 16, 2002. All of which are incorporated herein by reference.

FIELD OF INVENTION

This invention generally relates to a system and method for completing atransaction, and more particularly, to completing a transaction using aproxy transaction account identifier which emulates a transactionaccount number in a merchant recognizable format.

BACKGROUND OF THE INVENTION

Like barcode and voice data entry, RFID is a contactless informationacquisition technology. RFID systems are wireless, and are usuallyextremely effective in hostile environments where conventionalacquisition methods fail. RFID has established itself in a wide range ofmarkets, such as, for example, the high-speed reading of railwaycontainers, tracking moving objects such as livestock or automobiles,and retail inventory applications. As such, RFID technology has become aprimary focus in automated data collection, identification and analysissystems worldwide.

Of late, companies are increasingly embodying RFID data acquisitiontechnology in a fob or tag for use in completing financial transactions.A typical fob includes a transponder and is ordinarily a self-containeddevice which may be contained on any portable form factor. In someinstances, a battery may be included with the fob to power thetransponder. In which case the internal circuitry of the fob (includingthe transponder) may draw its operating power from the battery powersource. Alternatively, the fob may exist independent of an internalpower source. In this instance the internal circuitry of the fob(including the transponder) may gain its operating power directly froman RF interrogation signal. U.S. Pat. No. 5,053,774 issued to Schuermanndescribes a typical transponder RF interrogation system which may befound in the prior art. The Schuermann patent describes in general thepowering technology surrounding conventional transponder structures.U.S. Pat. No. 4,739,328 discusses a method by which a conventionaltransponder may respond to a RF interrogation signal. Other typicalmodulation techniques which may be used include, for example, ISO/IEC14443 and the like.

In the conventional fob systems, the fob is provided a fob identifier.The fob may be activated or powered upon presenting the fob in aninterrogation signal provided by a fob reader. Once the transactiondevice is interrogated, the transponder included in the fob may providethe fob identifier to an authorizing entity who may correlate the fobidentifier to a customer account number which is recognizable by amerchant system. That is, the information stored on the traditional fobordinarily must be translated by an authorizing entity in order for themerchant system to be able to process the transaction request.

The customer account number may be stored on an authorizing entitydatabase. An authorizing entity server may receive the fob identifierand correlate the fob identifier to a customer account number, which isordinarily maintained in the authorizing entity's system database. Sincethe customer account number is typically a conventional credit, debit orloyalty account number, the fob may be presented to complete atransaction whereby the authorizing agent translates the fob identifierto a customer account number and provides the customer account number tothe merchant system for processing under business as usual standards.The merchant system ordinarily provides the customer account number to acustomer account provider which uses the number to locate thecorresponding transaction account to be used to satisfy the customer'stransaction request.

One of the more visible uses of the RFID technology is found in theintroduction of Exxon/Mobil's Speedpass® and Shell's EasyPay® products.These products use transponders placed in a fob or tag which enablesautomatic identification of the user when the fob is presented at aPoint of Sale (POS) device. Fob identification data is typically passedto a third-party server database, where the identification data isreferenced or translated into a customer (e.g., user) credit or debitaccount. In an exemplary processing method, the third-party server seeksauthorization for the transaction by passing a transaction request andaccount data to an authorizing entity. Once authorization is received bythe server, clearance is sent to the point of sale device for completionof the transaction. In this way, the conventional transaction processingmethod involves an indirect path which causes undue overhead due to theuse of the third-party server to correlate the fob identification datato a customer account prior to providing the accompanying transactionrequest to the merchant POS for completion.

A need exists for a transaction authorization system which allows fobtransactions to be authorized while eliminating the cost associated withusing third-party servers.

SUMMARY OF THE INVENTION

Described herein is a system and method for securing a transaction usinga proxy transaction account identifier stored in the database of atransaction device. The proxy transaction account identifier may besegmented into multiple portions used to provide to a transactionaccount provider data corresponding to the a customer transactionaccount. The customer transaction account may include various datarelevant to the account or the accountholder. For example, the customertransaction account data may include such data as the account expirationdate, account identifier, account provider routing number,authentication tag, secondary security code (e.g., PersonalIdentification Number), effective date, and the like as is commonlyfound. At least one of the multiple portions of the proxy transactionaccount identifier may have portions of a merchant recognizable customertransaction account data stored therein.

The portions of the transaction account data included in the proxytransaction account identifier may be encrypted. The account data may beencrypted using a cryptogram generated by the transaction device towhich the proxy transaction account identifier is associated. Thetransaction device may calculate a complete cryptogram using changingvalues from the transaction device and data received from a point ofsale device (POS) linked to a merchant system. Once the transactiondevice calculates the cryptogram and encrypts the various portions ofaccount data, the encrypted account data and a portion of the cryptogrammay then be sent to the transaction account provider as a part of atleast one of the multiple portions of the proxy account identifier. Inthis way, the space requirements for sending the proxy transactiondevice information is reduced.

The transaction account provider receives the proxy account identifierand recalculates the cryptogram using the encrypted account identifierdata. The account provider may then verify the portion of the cryptogramincluded in the proxy account identifier, by for example comparing theportion of the cryptogram with the recalculated cryptogram to determineif a match exists. The account provider may decrypt the portions of theproxy account identifier and locate the corresponding account using theportions of the transaction account data. For example, the portions ofthe transaction account data may be subjected to an account providerdefined algorithm used to generate the complete transaction account datafrom the portions of the account data provided in the proxy accountidentifier.

The proxy account identifier may take the form of any suitable datatransmission which is recognizable by the merchant system. That is, themerchant system does not detect that the proxy account identifierincludes only partial account information. This is true because theinvention includes the partial account information in any traditionalaccount information format. For example, if the merchant system isconfigured to receive information in magnetic stripe format, the proxyaccount identifier is provided to the merchant system in magnetic stripeformat. As such, the present invention is more advantageous thanconventional fob devices in that the proxy transaction accountidentifier does not have to be sent to a third-party authorizing entityfor correlation to a customer number formatted in magnetic stripe whichmay then be sent to a merchant system for processing. The presentinvention eliminates the cost associated with involving a third-partyserver to translate the account fob data into a merchant recognizableformat (e.g., magnetic stripe).

In addition, the transaction device according to the present inventionmay include a transponder system for using RFID technology to initiateand complete financial transactions. The transaction system describedherein may include a RFID reader operable to provide a RF interrogationsignal for powering a transponder system, receiving a transponder systemRF signal, and providing proxy account identifier account data relativeto the transponder system RF signal. The transponder-reader paymentsystem may include a RFID protocol/sequence controller in electricalcommunication with one or more interrogators for providing aninterrogation signal to a transponder, and a RFID authentication circuitfor authenticating the signal received from the transponder. Thetransponder-reader payment system may further include a fob includingone or more transponders (e.g., modules) responsive to the interrogationsignal and for providing an authentication signal for verifying that thetransponder and/or the RFID reader are authorized to operate within thetransponder-reader payment system. In this way, the transponder may beresponsive to multiple interrogation signals provided at differentfrequencies. Further, the transponder may include a USB or serialinterface for use with a computer network or with the RFID reader.

The RFID system and method according to the present invention mayinclude a RFID-ready terminal and a transponder which may be embodied ina transaction device taking any suitable form capable of being presentedfor interrogation, such as, a fob, tag, card or any other form factor(e.g., wristwatch, keychain, cell phone, etc.), or the like. In thatregard, although the transaction device is described herein as embodiedin a fob, the invention is not so limited.

The system may further include a RFID reader configured to send astanding RFID recognition signal which may be transmitted from the RFIDreader via radio frequency (or electromagnetic) propagation. The fob maybe placed within proximity to the RFID reader such that the RFID signalmay interrogate the fob and initialize fob identification procedures.

These features and other advantages of the system and method, as well asthe structure and operation of various exemplary embodiments of thesystem and method, are described below.

BRIEF DESCRIPTION OF THE DRAWINGS

The accompanying drawings, wherein like numerals depict like elements,illustrate exemplary embodiments of the present invention, and togetherwith the description, serve to explain the principles of the invention.In the drawings:

FIG. 1 illustrates an exemplary RFID-based system in accordance with thepresent invention, wherein exemplary components used for fob transactioncompletion are depicted;

FIG. 2 is a schematic illustration of an exemplary transponder system inaccordance with the present invention;

FIG. 3 is a schematic illustration of an exemplary RFID reader inaccordance with the present invention;

FIG. 4 is an exemplary flow diagram of an exemplary authenticationprocess in accordance with the present invention;

FIG. 5 is an exemplary flow diagram of an exemplary decision process fora protocol/sequence controller in accordance with the present invention;

FIG. 6 is a flow diagram of an exemplary payment/transaction process inaccordance with the present invention;

FIG. 7 illustrates an exemplary layout of data fields for encoding datain traditional magnetic stripe track 1;

FIG. 8 illustrates an exemplary layout of data fields for encoding datain traditional magnetic stripe track 2;

FIG. 9 illustrates an exemplary layout of proxy fields for encoding datain proxy track 1 format;

FIG. 10 illustrates an exemplary layout of proxy fields for encodingdata in proxy track 2 format;

FIG. Ills an illustration of an exemplary proxy transaction accountidentifier transaction, in accordance with an exemplary embodiment ofthe present invention;

FIG. 12 is an example of a conventional magnetic stripe track 2 layoutfor MasterCard; and

FIG. 13 is an example of a proxy track 2 layout for MasterCard inaccordance with the present invention.

DETAILED DESCRIPTION

The present invention may be described herein in terms of functionalblock components, screen shots, optional selections and variousprocessing steps. Such functional blocks may be realized by any numberof hardware and/or software components configured to perform tospecified functions. For example, the present invention may employvarious integrated circuit components (e.g., memory elements, processingelements, logic elements, look-up tables, and the like), which may carryout a variety of functions under the control of one or moremicroprocessors or other control devices. Similarly, the softwareelements of the present invention may be implemented with anyprogramming or scripting language or platforms such as C, C++, Java,JavaCard applets, MULTOS Executive Language, COBOL, assembler, PERL,extensible markup language (XML),

JavaCard and MULTOS with the various algorithms being implemented withany combination of data structures, objects, processes, routines orother programming elements. Further, it should be noted that the presentinvention may employ any number of conventional techniques for datatransmission, signaling, data processing, network control, and the like.For a basic introduction on cryptography, review a text written by BruceSchneier entitled “Applied Cryptography: Protocols, Algorithms, andSource Code in C,” published by John Wiley & Sons (second edition,1996), herein incorporated by reference.

In addition, many applications of the present invention could beformulated. The exemplary network disclosed herein may include anysystem for exchanging data or transacting business, such as theinternet, an intranet, an extranet, WAN, LAN, satellite communications,and/or the like. It is noted that the network may be implemented asother types of networks, such as an interactive television network(ITN).

Where required, the system user may interact with the system via anyinput device such as, a keypad, keyboard, mouse, kiosk, personal digitalassistant, handheld computer (e.g., Palm Pilot®, Blueberry®), cellularphone and/or the like. Similarly, the invention could be used inconjunction with any type of personal computer, network computer, workstation, minicomputer, mainframe, or the like running any operatingsystem such as any version of Windows, Windows NT, Windows 2000, Windows98, Windows 95, MacOS, OS/2, BeOS, Linux, UNIX, Solaris or the like.Moreover, although the invention may frequently be described as beingimplemented with TCP/IP communications protocol, it should be understoodthat the invention could also be implemented using SNA, IPX, Appletalk,IPte, NetBIOS, OSI or any number of communications protocols. Moreover,the system contemplates, the use, sale, or distribution of any goods,services or information over any network having similar functionalitydescribed herein.

FIG. 1 illustrates an exemplary RFID transaction system 100 inaccordance with the present invention, wherein exemplary components foruse in completing a fob transaction are depicted. In general, theoperation of system 100 may begin when fob transponder system 102 (e.g.,fob 102) is presented for payment, and is interrogated by RFID reader104 or, alternatively, interface 134. Fob 102 and RFID reader 104 maythen engage in mutual authentication after which the transponder 102 mayprovide the transponder identification and/or account identifier to theRFID reader 104 which may further provide the information to themerchant system 130 POS device 110.

System 100 may include a fob 102 having a transponder 114 and a RFIDreader 104 in RF communication with fob 102. Although the presentinvention is described with respect to a fob 102, the invention is notto be so limited. Indeed, system 100 may include any transaction deviceconfigured to communicate data for transaction completion. In oneexemplary embodiment the transaction device may be configured tocommunicate with a RFID reader 104 via RF communication. Typical devicesmay include, for example, a key ring, tag, card, cell phone, wristwatchor any such form capable of being presented for interrogation.

The RFID reader 104 may be configured to communicate using a RFIDinternal antenna 106. Alternatively, RFID reader 104 may include anexternal antenna 108 for communications with fob 102, where the externalantenna may be made remote to the RFID reader 104 using a suitable cableand/or data link 120. RFID reader 104 may be further in communicationwith a merchant system 130 via a data link 122. The system 100 mayinclude a transaction completion system including a point of interactiondevice such as, for example, a merchant point of sale (POS) device 110or a computer interface (e.g., user interface) 134. In one exemplaryembodiment the transaction completion system may include a merchantsystem 130 including the POS device 110 in communication with a RFIDreader 104 (via data link 122). As described more fully below, thetransaction completion system may include the user interface 134connected to a network 136 and to the transponder via a USB connector132.

Although the point of interaction device is described herein withrespect to a merchant point of sale (POS) device, the invention is notto be so limited. Indeed, a merchant POS device is used herein by way ofexample, and the point of interaction device may be any device capableof receiving data relative to fob 102. In this regard, the POS device110 may be any point of interaction device enabling the user to completea transaction using a fob 102. POS device 110 may be in furthercommunication with a customer interface 118 (via data link 128) forentering at least a customer identity verification information. Inaddition, POS device 110 may be in communication with a merchant hostnetwork 112 (via data link 124) for processing any transaction request.In this arrangement, information provided by RFID reader 104 is providedto the POS device 110 of merchant system 130 via data link 122. The POSdevice 110 may receive the information (and alternatively may receiveany identity verifying information from customer interface 118 via datalink 128) and provide the information to host system 112 for processing.

A variety of conventional communications media and protocols may be usedfor data links 120, 122, 124, and 128. For example, data links 120, 122,124, and 128 may be an Internet Service Provider (ISP) configured tofacilitate communications over a local loop as is typically used inconnection with standard modem communication, cable modem, dishnetworks, ISDN, Digital Subscriber Lines (DSL), or any wirelesscommunication media. In addition, the merchant system 130 including thePOS device 110 and host network 112 may reside on a local area networkwhich interfaces to a remote network (not shown) for remoteauthorization of an intended transaction. The merchant system 130 maycommunicate with the remote network via a leased line, such as a T1, D3line, or the like. Such communications lines are described in a varietyof texts, such as, “Understanding Data Communications,” by Gilbert Held,which is incorporated herein by reference.

An account number, as used herein, may include any identifier for anaccount (e.g., credit, charge debit, checking, savings, reward, loyalty,or the like) which may be maintained by a transaction account provider(e.g., payment authorization center) and which may be used to complete afinancial transaction. A typical account number (e.g., account data) maybe correlated to a credit or debit account, loyalty account, or rewardsaccount maintained and serviced by such entities as American Express,Visa and/or MasterCard or the like. For ease in understanding, thepresent invention may be described with respect to a credit account.However, it should be noted that the invention is not so limited andother accounts permitting an exchange of goods and services for anaccount data value is contemplated to be within the scope of the presentinvention.

In addition, the account number (e.g., account data) may be associatedwith any device, code, or other identifier/indicia suitably configuredto allow the consumer to interact or communicate with the system, suchas, for example, authorization/access code, personal identificationnumber (PIN), Internet code, digital certificate, biometric data, and/orother identification indicia. The account number may be optionallylocated on a rewards card, charge card, credit card, debit card, prepaidcard, telephone card, smart card, magnetic stripe card, bar code card,and/or the like. The account number may be distributed and stored in anyform of plastic, electronic, magnetic, and/or optical device capable oftransmitting or downloading data to a second device. A customer accountnumber may be, for example, a sixteen-digit credit card number, althougheach credit provider has its own numbering system, such as thefifteen-digit numbering system used by American Express. Each company'scredit card numbers comply with that company's standardized format suchthat the company using a sixteen-digit format will generally use fourspaced sets of numbers, as represented by the number “0000 0000 00000000”. Additionally, the first five to seven digits may be reserved forprocessing purposes and identify the issuing bank, card type and etc. Ina typical example, the first digit of the account number may be a commoncharacter which may correspond to a particular account provider. Forexample, account numbers beginning with the common character 4 maycorrespond to transaction accounts provided by VISA; account numbersbeginning with the number 5 may correspond to transaction accountsprovided by MASTERCARD; account numbers beginning with the commoncharacter 3 may correspond to transaction accounts provided by AMERICANEXPRESS. In this example, the last sixteenth digit, sometimes called the“Longitudinal Redundancy Check” character, is used as a sum check forthe sixteen-digit number. The intermediary eight-to-ten digits are usedto uniquely identify the customer.

The account number may be stored as Track 1 and Track 2 data as definedin ISO/IEC 7813, and further may be made unique to fob 102. In oneexemplary embodiment, the account number may include a unique fob serialnumber and user identification number, as well as specific applicationapplets. The account number may be stored in fob 102 inside a database214, as described more fully below. Database 214 may be configured tostore multiple account numbers issued to the fob 102 user by the same ordifferent account providing institutions. Where the account datacorresponds to a loyalty or rewards account, the database 214 may beconfigured to store the attendant loyalty or rewards points data.

FIG. 2 illustrates a block diagram of the many functional blocks of anexemplary fob 102 in accordance with the present invention. Fob 102 maybe a RFID fob 102 which may be presented by the user to facilitate anexchange of funds or points, etc., for receipt of goods or services. Asdescribed herein, by way of example, the fob 102 may be a RFID fob whichmay be presented for facilitating payment for goods and/or services.

Fob 102 may include an antenna 202 for receiving an interrogation signalfrom RFID reader 104 via antenna 106 (or alternatively, via externalantenna 108). Fob antenna 202 may be in communication with a transponder114. In one exemplary embodiment, transponder 114 may be a 13.56 MHztransponder compliant with the ISO/IEC 14443 standard, and antenna 202may be of the 13 MHz variety. The transponder 114 may be incommunication with a transponder compatible modulator/demodulator 206configured to receive the signal from transponder 114 and configured tomodulate the signal into a format readable by any later connectedcircuitry. Further, modulator/demodulator 206 may be configured toformat (e.g., demodulate) a signal received from the later connectedcircuitry in a format compatible with transponder 114 for transmittingto RFID reader 104 via antenna 202. For example, where transponder 114is of the 13.56 MHz variety, modulator/demodulator 206 may be ISO/IEC14443-2 compliant.

Modulator/demodulator 206 may be coupled to a protocol/sequencecontroller 208 for facilitating control of the authentication of thesignal provided by RFID reader 104, and for facilitating control of thesending of the fob 102 account number. In this regard, protocol/sequencecontroller 208 may be any suitable digital or logic driven circuitrycapable of facilitating determination of the sequence of operation forthe fob 102 inner-circuitry. For example, protocol/sequence controller208 may be configured to determine whether the signal provided by theRFID reader 104 is authenticated, and thereby providing to the RFIDreader 104 the account number stored on fob 102.

Protocol/sequence controller 208 may be further in communication withauthentication circuitry 210 for facilitating authentication of thesignal provided by RFID reader 104. Authentication circuitry may befurther in communication with a non-volatile secure memory database 212.Secure memory database 212 may be any suitable elementary file systemsuch as that defined by ISO/IEC 7816-4 or any other elementary filesystem allowing a lookup of data to be interpreted by the application onthe chip. Database 212 may be any type of database, such as relational,hierarchical, object-oriented, and/or the like. Common database productsthat may be used to implement the databases include DB2 by IBM (WhitePlains, N.Y.), any of the database products available from OracleCorporation (Redwood Shores, Calif.), Microsoft Access or MSSQL byMicrosoft Corporation (Redmond, Wash.), or any other database product.Database 212 may be organized in any suitable manner, including as datatables or lookup tables. Association of certain data may be accomplishedthrough any data association technique known and practiced in the art.For example, the association may be accomplished either manually orautomatically. Automatic association techniques may include, forexample, a database search, a database merge, GREP, AGREP, SQL, and/orthe like. The association step may be accomplished by a database mergefunction, for example, using a “key field” in each of the manufacturerand retailer data tables. A “key field” partitions the databaseaccording to the high-level class of objects defined by the key field.For example, a certain class may be designated as a key field in boththe first data table and the second data table, and the two data tablesmay then be merged on the basis of the class data in the key field. Inthis embodiment, the data corresponding to the key field in each of themerged data tables is preferably the same. However, data tables havingsimilar, though not identical, data in the key fields may also be mergedby using AGREP, for example.

The data may be used by protocol/sequence controller 208 for dataanalysis and used for management and control purposes, as well assecurity purposes. Authentication circuitry may authenticate the signalprovided by RFID reader 104 by association of the RFID signal toauthentication keys stored on database 212. Encryption circuitry may usekeys stored on database 212 to perform encryption and/or decryption ofsignals sent to or from the RFID reader 104.

In addition, protocol/sequence controller 208 may be in communicationwith a database 214 for storing at least a fob 102 account data, and aunique fob 102 identification code. Protocol/sequence controller 208 maybe configured to retrieve the account number from database 214 asdesired. Database 214 may be of the same configuration as database 212described above. The fob account data and/or unique fob identificationcode stored on database 214 may be encrypted prior to storage. Thus,where protocol/sequence controller 208 retrieves the account data, andor unique fob identification code from database 214, the account numbermay be encrypted when being provided to RFID reader 104. Further, thedata stored on database 214 may include, for example, an unencryptedunique fob 102 identification code, a user identification, Track 1 and 2data, as well as specific application applets.

Fob 102 may be configured to respond to multiple interrogation frequencytransmissions provided by RFID reader 104. That is, as described morefully below, RFID reader 104 may provide more than one RF interrogationsignal. In this case, fob 102 may be configured to respond to themultiple frequencies by including in fob 102 one or more additional RFsignal receiving/transmitting units 226. RF signalreceiving/transmitting unit 226 may include an antenna 218 andtransponder 220 where the antenna 218 and transponder 220 are compatiblewith at least one of the additional RF signals provided by RFID reader104. For example, in one exemplary embodiment, fob 102 may include a 134KHz antenna 218 configured to communicate with a 134 KHz transponder220. In this exemplary configuration, an ISO/IEC 14443-2 compliantmodulator/demodulator may not be required. Instead, the 134 KHztransponder may be configured to communicate directly with theprotocol/sequence controller 208 for transmission and receipt ofauthentication and account number signals as described above.

In another embodiment, fob 102 may further include a universal serialbus (USB) connector 132 for interfacing fob 102 to a user interface 134.User interface 134 may be further in communication with a POS device 110via a network 136. Network 136 may be the Internet, an intranet, or thelike as is described above with respect to network 112. Further, theuser interface 134 may be similar in construction to any conventionalinput devices and/or computing systems aforementioned for permitting thesystem user to interact with the system. In one exemplary embodiment,fob 102 may be configured to facilitate online Internet payments. A USBconverter 222 may be in communication with a USB connector 232 forfacilitating the transfer of information between themodulator/demodulator 206 and USB connector 132. Alternatively, USBconverter 222 may be in communication with protocol/sequence controller208 to facilitate the transfer of information between protocol/sequencecontroller 208 and USB connector 132.

Where fob 102 includes a USB connector 132, fob 102 may be incommunication with, for example, a USB port on user interface 134. Theinformation retrieved from fob 102 may be compatible with credit cardand/or smart card technology enabling usage of interactive applicationson the Internet. No RFID reader may be required in this embodiment sincethe connection to POS device 110 may be made using a USB port on userinterface 134 and a network 136.

Fob 102 may include means for enabling activation of the fob by theuser. In one exemplary embodiment, a switch 230 which may be operated bythe user of the fob 102. The switch 230 on fob 102 may be used toselectively or inclusively activate the fob 102 for particular uses. Inthis context, the term “selectively” may mean that the switch 230enables the user to place the fob 102 in a particular operational mode.For example, the user may place the fob 102 in a mode for enablingpurchase of a good or of a service using a selected account number.Alternatively, the fob may be placed in a mode as such that the fobaccount number is provided by USB port 132 (or serial port) only and thefob transponder 114 is disabled. In addition, the term “inclusively” maymean that the fob 102 is placed in an operational mode permitting thefob 102 to be responsive to the RF interrogation and interrogation viathe USB connector 132. In one particular embodiment, the switch 230 mayremain in an OFF position ensuring that one or more applications oraccounts associated with the fob 102 are non-reactive to any commandsissued by RFID reader 104. As used herein, the OFF position may betermed the “normal” position of the activation switch 230, althoughother normal positions are contemplated.

In another exemplary embodiment, when the switch 230 is moved from theOFF position, the fob 102 may be deemed activated by the user. That is,the switch 230 may activate internal circuitry in fob 102 for permittingthe fob to be responsive to RF signals (e.g., commands from RFID reader104). In this way, switch 230 may facilitate control of the active andinactive states of the fob 102. Such control increases the systemsecurity by preventing inadvertent or illegal use of the fob 102.

In one exemplary embodiment, switch 230 may be a simple mechanicaldevice in communication with circuitry which may electrically preventthe fob from being powered by a RFID reader. That is, when switch 230 isin its normal position, switch 230 may provide a short to the fob 102internal circuitry, preventing fob 102 from being responsive tointerrogation by RF or via the USB connector 230. In this arrangement,the switch 230 may be, for example, a “normally closed” (NC) configuredswitch, which may be electrically connected to the antenna 202 at theinterface of the antenna 202 and the transponder 114. The switch 230 maybe depressed, which may open the switch 230 fully activating the antenna202.

In yet another exemplary embodiment, the fob 102 may include a biometricsensor and biometric membrane configured to operate as switch 230 andactivate the fob 102 when provided biometric signal from the fob 102user. Such biometric signal may be the digital reading of a fingerprint,thumbprint, or the like. Typically, where biometric circuitry is used,the biometric circuitry may be powered by an internal voltage source(e.g., battery). In this case, the switch may not be a simple mechanicaldevice, but a switch which is powered. In yet another exemplaryembodiment, switch 230 may be battery powered though no biometriccircuitry is present in the fob 102.

In yet another embodiment, the switch 230 may be a logic switch. Whereswitch 230 is a logic switch the switch 230 control software may be readfrom the sequence controller 208 to selectively control the activationof the various fob 102 components.

FIG. 3 illustrates an exemplary block diagram of a RFID reader 104 inaccordance with an exemplary embodiment of the present invention. RFIDreader 104 includes, for example, an antenna 106 coupled to a RF module302, which is further coupled to a control module 304. In addition, RFIDreader 104 may include an antenna 108 positioned remotely from the RFIDreader 104 and coupled to RFID reader 104 via a suitable cable 120, orother wire or wireless connection.

RF module 302 and antenna 106 may be suitably configured to facilitatecommunication with fob 102. Where fob 102 is formatted to receive asignal at a particular RF frequency, RF module 302 may be configured toprovide an interrogation signal at that same frequency. For example, inone exemplary embodiment, fob 102 may be configured to respond to aninterrogation signal of about 13.56 MHz. In this case, RFID antenna 106may be 13 MHz and may be configured to transmit an interrogation signalof about 13.56 MHz. That is, fob 102 may be configured to include afirst and second RF module (e.g., transponder) where the first modulemay operate using a 134 kHz frequency and the second RF module mayoperate using a 13.56 MHz frequency. The RFID reader 104 may include tworeceivers which may operate using the 134 kHz frequency, the 13.56 MHzfrequency or both. When the reader 104 is operating at 134 kHzfrequency, only operation with the 134 kHz module on the fob 102 may bepossible. When the reader 104 is operating at the 13.56 MHz frequency,only operation with the 13.56 MHz module on the fob 102 may be possible.Where the reader 104 supports both a 134 kHz frequency and a 13.56 MHzRF module, the fob 102 may receive both signals from the reader 104. Inthis case, the fob 102 may be configured to prioritize selection of theone or the other frequency and reject the remaining frequency.Alternatively, the reader 104 may receive signals at both frequenciesfrom the fob upon interrogation. In this case, the reader 104 may beconfigured to prioritize selection of one or the other frequency andreject the remaining frequency.

Further, protocol/sequence controller 314 may include an optionalfeedback function for notifying the user of the status of a particulartransaction. For example, the optional feedback may be in the form of anLED, LED screen and/or other visual display which is configured to lightup or display a static, scrolling, flashing and/or other message and/orsignal to inform the fob 102 user that the transaction is initiated(e.g., fob is being interrogated), the fob is valid (e.g., fob isauthenticated), transaction is being processed, (e.g., fob accountnumber is being read by RFID reader) and/or the transaction is acceptedor denied (e.g., transaction approved or disapproved). Such an optionalfeedback may or may not be accompanied by an audible indicator (or maypresent the audible indicator singly) for informing the fob 102 user ofthe transaction status. The audible feedback may be a simple tone,multiple tones, musical indicator, and/or voice indicator configured tosignify when the fob 102 is being interrogated, the transaction status,or the like.

RFID antenna 106 may be in communication with a transponder 306 fortransmitting an interrogation signal and receiving at least one of anauthentication request signal and/or an account data from fob 102.Transponder 306 may be of similar description as transponder 114 of FIG.2. In particular, transponder 306 may be configured to send and/orreceive RF signals in a format compatible with antenna 202 in similarmanner as was described with respect to fob transponder 114. Forexample, where transponder 306 is 13.56 MHz RF rated antenna 202 may be13.56 MHz compatible. Similarly, where transponder 306 is ISO/IEC 14443rated, antenna 106 may be ISO/IEC 14443 compatible.

RF module 302 may include, for example, transponder 306 in communicationwith authentication circuitry 308 which may be in communication with asecure database 310. Authentication circuitry 308 and database 310 maybe of similar description and operation as described with respect toauthentication circuitry 210 and secure memory database 214 of FIG. 2.For example, database 310 may store data corresponding to the fob 102which are authorized to transact business over system 100. Database 310may additionally store RFID reader 104 identifying information forproviding to fob 102 for use in authenticating whether RFID reader 104is authorized to be provided the fob account number stored on fobdatabase 214.

Authentication circuitry 308 may be of similar description and operationas authentication circuitry 210. That is, authentication circuitry 308may be configured to authenticate the signal provided by fob 102 insimilar manner that authentication circuitry 210 may be configured toauthenticate the signal provided by RFID reader 104. As is describedmore fully below, fob 102 and RFID reader 104 engage in mutualauthentication. In this context, “mutual authentication” may mean thatoperation of the system 100 may not take place until fob 102authenticates the signal from RFID reader 104, and RFID reader 104authenticates the signal from fob 102.

FIG. 4 is a flowchart of an exemplary authentication process inaccordance with the present invention. The authentication process isdepicted as one-sided. That is, the flowchart depicts the process of theRFID reader 104 authenticating the fob 102, although similar steps maybe followed in the instance that fob 102 authenticates RFID reader 104.

As noted, database 214 may store security keys for encrypting ordecrypting signals received from RFID reader 104. In an exemplaryauthentication process, where RFID reader 104 is authenticating fob 102,RFID reader 104 may provide an interrogation signal to fob 102 (step402). The interrogation signal may include a random code generated bythe RFID reader authentication circuit 308, which is provided to the fob102 and which is encrypted using an unique encryption key correspondingto the fob 102 unique identification code. For example, theprotocol/sequence controller 314 may provide a command to activate theauthentication circuitry 308. Authentication circuitry 308 may providefrom database 310 a fob interrogation signal including a random numberas a part of the authentication code generated for each authenticationsignal. The authentication code may be an alphanumeric code which isrecognizable (e.g., readable) by the RFID reader 104 and the fob 102.The authentication code may be provided to the fob 102 via the RFID RFinterface 306 and antenna 106 (or alternatively antenna 108).

Fob 102 receives the interrogation signal (step 404). The interrogationsignal including the authorization code may be received at the RFinterface 114 via antenna 202. Once the fob 102 is activated, theinterrogation signal including the authorization code may be provided tothe modulator/demodulator circuit 206 where the signal may bedemodulated prior to providing the signal to protocol/sequencecontroller 208. Protocol/sequence controller 208 may recognize theinterrogation signal as a request for authentication of the fob 102, andprovide the authentication code to authentication circuit 210. The fob102 may then encrypt the authentication code (step 406). In particular,encryption may be done by authentication circuit 210, which may receivethe authentication code and encrypt the code prior to providing theencrypted authentication code to protocol/sequence controller 208. Fob102 may then provide the encrypted authentication code to the RFIDreader 104 (step 408). That is, the encrypted authentication code may beprovided to the RFID reader 104 via modulator/demodulator circuit 206,RF interface 114 (e.g., transponder 114) and antenna 202.

RFID reader 104 may then receive the encrypted authentication code anddecryption it (step 410). That is, the encrypted authentication code maybe received at antenna 106 and RF interface 306 and may be provided toauthentication circuit 308. Authentication circuit 308 may be provided asecurity authentication key (e.g., transponder system decryption key)from database 310. The authentication circuit may use the authenticationkey to decrypt (e.g., unlock) the encrypted authorization code. Theauthentication key may be provided to the authentication circuit basedon the fob 102 unique identification code. For example, the encryptedauthentication code may be provided along with the unique fob 102identification code. The authentication circuit may receive the fob 102unique identification code and retrieve from the database 310 atransponder system decryption key correlative to the unique fob 102identification code for use in decrypting the encrypted authenticationcode.

Once the authentication code is decrypted, the decrypted authenticationcode is compared to the authentication code provided by the RFID reader104 at step 402 (step 412) to verify its authenticity. If the decryptedauthorization code is not readable (e.g., recognizable) by theauthentication circuit 308, the fob 102 is deemed to be unauthorized ornot authenticated (e.g., unverified) (step 418) and the operation ofsystem 100 is terminated (step 420). Contrarily, if the decryptedauthorization code is recognizable (e.g., verified) by the fob 102, thedecrypted authorization code is deemed to be authenticated and the fob102 is considered authenticated (e.g., verified) (step 414), and thetransaction is allowed to proceed (step 416). In one particularembodiment, the proceeding transaction may mean that the fob 102 mayauthenticate the RFID reader 104, although, it should be apparent thatthe RFID reader 104 may authenticate the fob 102 prior to the fob 102authenticating the RFID reader 104.

It should be noted that in an exemplary verification process, theauthorization circuit 308 may determine whether the unlockedauthorization code is identical to the authorization code provided instep 402. If the codes are not identical then the fob 102 is notauthorized to access system 100. Although, the verification process isdescribed with respect to identicality, identicality is not required.For example, authentication circuit 308 may verify the decrypted codethrough any protocol, steps, or process for determining whether thedecrypted code corresponds to an authorized fob 102.

Authentication circuitry 308 may additionally be in communication with aprotocol/sequence controller 314 of similar operation and description asprotocol/sequence controller 208 of FIG. 2. That is, protocol/sequencedevice controller 314 may be configured to determine the order ofoperation of the RFID reader 104 components. For example, FIG. 5illustrates and exemplary decision process under which protocol/sequencecontroller 314 may operate. Protocol/sequence controller 314 may commandthe different components of RFID reader 104 based on whether a fob 102is present (step 502). For example, if a fob 102 is not present, thenprotocol/sequence controller 314 may command the RFID reader 104 toprovide an uninterrupted interrogation signal (step 504). That is, theprotocol/sequence controller may command the authentication circuit 308to provide an uninterrupted interrogation signal until the presence of afob 102 is realized. If a fob 102 is present, the protocol/sequencecontroller 314 may command the RFID reader 104 to authenticate the fob102 (step 506).

As noted above, authentication may mean that the protocol/sequencecontroller 314 may command the authentication circuit 308 to provide fob102 with an authorization code. If a response is received from fob 102,protocol/sequence controller may determine if the response is a responseto the RFID reader 104 provided authentication code, or if the responseis a signal requiring authentication (step 508). If the signal requiresauthentication, then the protocol/sequence controller 314 may activatethe authentication circuit as described above (step 506). On the otherhand, if the fob 102 signal is a response to the provided authenticationcode, then the protocol/sequence controller 314 may command the RFIDreader 104 to retrieve the appropriate security key for enablingrecognition of the signal (step 510). That is, the protocol/sequencecontroller 314 may command the authentication circuit 308 to retrievefrom database 310 a security key (e.g., transponder system decryptionkey), unlock the signal, and compare the signal to the signal providedby the RFID reader 104 in the authentication process (e.g., step 506).If the signal is recognized, the protocol/sequence controller 314 maydetermine that the fob 102 is authorized to access the system 100. Ifthe signal is not recognized, then the fob is considered not authorized.In which case, the protocol/sequence controller 314 may command the RFIDcontroller to interrogate for authorized fobs (step 504).

Once the protocol/sequence controller determines that the fob 102 isauthorized (step 512), the protocol/sequence controller 314 may seek todetermine if additional signals are being sent by fob 102 (step 514). Ifno additional signal is provided by fob 102, then the protocol/sequencecontroller 314 may provide all the components of RFID reader 104 toremain idle until such time as a signal is provided (step 516).Contrarily, where an additional fob 102 signal is provided, theprotocol/sequence controller 314 may determine if the fob 102 isrequesting access to the merchant point of sale terminal 110 (e.g., POSdevice) or if the fob 102 is attempting to interrogate the RFID reader104 for return (e.g., mutual) authorization (step 518). Where the fob102 is requesting access to a merchant point of sale terminal 110, theprotocol/sequence controller 314 may command the RFID reader to opencommunications with the point of sale terminal 110 (step 524). Inparticular, the protocol/sequence controller may command the point ofsale terminal communications interface 312 to become active, permittingtransfer of data between the RFID reader 104 and the merchant point ofsale terminal 110.

On the other hand, if the protocol/sequence controller determines thatthe fob 102 signal is a mutual interrogation signal, then theprotocol/sequence controller may command the RFID reader 104 to encryptthe signal (step 520). The protocol/sequence controller 314 may commandthe encryption authentication circuit 318 to retrieve from database 320the appropriate encryption key in response to the fob 102 mutualinterrogation signal. The protocol/sequence controller 314 may thencommand the RFID reader 104 to provide the encrypted mutualinterrogation signal to the fob 102 (step 522). The protocol/sequencecontroller 314 may command the authentication circuit 318 to provide anencrypted mutual interrogation signal for the fob 102 to mutuallyauthenticate. Fob 102 may then receive the encrypted mutualinterrogation signal and retrieve from authentication circuitry 212 aRFID reader decryption key.

Although an exemplary decision process of protocol/sequence controller314 is described, it should be understood that a similar decisionprocess may be undertaken by protocol/sequence controller 208 incontrolling the components of fob 102. Indeed, as described above,protocol/sequence controller 314 may have similar operation and designas protocol/sequence controller 208. In addition, to the above,protocol/sequence controllers 208 and 314 may incorporate in thedecision process appropriate commands for enabling USB interfaces 222and 316, when the corresponding device is so connected.

Encryption/decryption component 318 may be further in communication witha secure account number database 320 which stores the security keysnecessary for decrypting the encrypted fob account number. Uponappropriate request from protocol/sequence controller 314,encryption/decryption component (e.g., circuitry 318) may retrieve theappropriate security key, decrypt the fob account number and forward thedecrypted account number to protocol sequence controller 314 in anyformat readable by any later connected POS device 110. In one exemplaryembodiment, the account number may be forwarded in a conventionalmagnetic stripe format compatible with the ISO/IEC 7813 standard. Uponreceiving the account number in magnetic stripe format,protocol/sequence controller 314 may forward the account number to POSdevice 110 via a communications interface 312 and data link 122, as bestshown in FIG. 1. POS device 110 may receive the decrypted account numberand forward the magnetic stripe formatted account number to a merchantnetwork 112 for processing under the merchant's business as usualstandard. In this way, the present invention eliminates the need of athird-party server. Further, where the POS device 110 receives aresponse from network 112 (e.g., transaction authorized or denied),protocol/sequence controller 314 may provide the network response to theRF module 302 for optically and/or audibly communicating the response tothe fob 102 user.

RFID reader 104 may additionally include a USB interface 316, incommunication with the protocol/sequence controller 314. In oneembodiment, the USB interface may be a RS22 serial data interface.Alternatively, the RFID reader 104 may include a serial interface suchas, for example, a RS232 interface in communication with theprotocol/sequence controller 314. The USB connector 316 may be incommunication with a personalization system (not shown) for initializingRFID reader 104 to system 100 application parameters. That is, prior tooperation of system 100, RFID reader 104 may be in communication with apersonalization system for populating database 310 with a listing ofsecurity keys belonging to authorized fobs 102, and for populatingdatabase 320 with the security keys to decrypt the fob 102 accountnumbers placing the account numbers in ISO/IEC 7813 format. In this way,RFID reader 104 may be populated with a unique identifier (e.g., serialnumber) which may be used by fob authentication circuitry 210 todetermine if RFID reader 104 is authorized to receive a fob 102encrypted account number.

FIG. 6 illustrates an exemplary flow diagram for the operation of system100, in accordance with the present invention. The operation may beunderstood with reference to FIG. 1, which depicts the elements ofsystem 100 which may be used in an exemplary transaction. The process isinitiated when a customer desires to present a fob 102 for payment (step602). Upon presentation of the fob 102, the merchant initiates the RFpayment procedure via an RFID reader 104 (step 604). In particular, theRFID reader sends out an interrogation signal to scan for the presenceof fob 102 (step 606). The RF signal may be provided via the RFID readerantenna 106 or optionally via an external antenna 108. The customer thenmay present the fob 102 for payment (step 608) and the fob 102 isactivated by the RF interrogation signal provided.

The fob 102 and the RFID reader 104 may then engage in mutualauthentication (step 610). Where the mutual authentication isunsuccessful (step 612), an error message may be provided to thecustomer via the RFID optical and/or audible indicator (step 614) andthe transaction may be aborted (step 616). Where the mutualauthentication is successful (step 612), the RFID reader 104 may providethe customer with an appropriate optical and/or audible message (e.g.,“transaction processing” or “wait”) (step 618). The fobprotocol/sequence controller 208 may then retrieve from database 214 anencrypted fob account number and provide the encrypted account number tothe RFID reader 104 (step 620).

The account number may then be provided to the merchant system 130 forprocessing. In one exemplary embodiment, the RFID reader 104 may decryptthe account number and convert the account number into magnetic stripe(ISO/IEC 7813) format (step 622) prior to providing the account numberto the merchant system 130 (step 628). In particular, the account numbermay be provided to the POS 110 device for transmission to the merchantnetwork 112 for processing under known business transaction standards.The POS device 110 may then send an optical and/or audible transactionstatus message to the RFID reader 104 (step 630) for communication tothe customer (step 632).

In another exemplary embodiment, the fob 102 may provide the accountnumber to the merchant system 130 (step 624) in magnetic stripe format,so that the reader 104 does not need to convert the account number tomagnetic stripe format. In this embodiment, the account number may ormay not be encrypted prior to providing the account number to themerchant system for processing.

One key concern with providing an unencrypted account number to themerchant system 130 is that the unencrypted account number may beintercepted and later used to complete fraudulent transactions. As such,the present invention employs a proxy account number (e.g., proxyaccount identifier), which is provided to the merchant system 130 fortransaction processing under the merchant business as usual standards(or with minimal changes or customizations). The proxy accountidentifier according to the present invention may be in similar formatas is the account number so that the merchant system 130 is unaware thatit is receiving proxy data. For example, if the account number istypically provided to the merchant system 130 in magnetic stripe format,then the proxy account identifier may also be in magnetic stripe format.It should be noted that the magnetic stripe format is discussed hereinby way of example, and the present invention contemplates that theaccount number and the proxy account identifier may take any formrecognizable by the merchant system 130.

As noted, the account number may ordinarily contain several portionsreserved for predetermined information. For example, where the accountnumber is in magnetic stripe format, the account number portions aregoverned by the International Standards Organization ISO/IEC 7811, etal. standard, which are hereby incorporated by reference. The standardrequires the magnetic stripe information to be encoded in three“tracks,” i.e., track 1, track 2, and track 3.

Data stored in track 1 is typically used to verify the user's identity.Track 1 may be reserved for encoding the transaction account identifier,the name of the account holder, and at least the expiration date of thetransaction account or the transaction device. The information encodedin track 1 may be alpha-numeric and may be encoded at about 7Bits/Character. FIG. 7 illustrates an exemplary layout of the datastored in track 1, wherein track 1 is segmented into several distinctpredetermined portions (e.g., “fields”) for encoding the various accountidentifying information. The following table may be useful fordetermining the field definitions of the information provided.

TABLE 1 Table of Field Codes for Track 1 SS = Start Sentinel “%” FC =Format Code PAN = Primary Acct. # (19 digits max) FS = Field Separator“{circumflex over ( )}” Name = 26 alphanumeric characters max.Additional Data = Expiration Date, offset, encrypted PIN, etc. ES = EndSentinel “?” LRC = Longitudinal Redundancy Check

Track 2 is the track most commonly used by the American BankingAssociation associated banking institutions. Track 2 is typicallyreserved for a duplicate version of the transaction account identifierand the expiration date of the transaction account or the transactiondevice stored in track 1. In addition, track 2 may include an encryptedPersonal Identification Code, and other discretionary data. However, thedata in track 2 is encoded at a lower Bit per Character density than thedata encoded in track 1. The data in track 2 may be numeric only and maybe encoded at about 5 Bits/Character. The lower density ratio in track 2is designed to ensure compatibility with older technology readers and toprovide redundancy when reading with newer technology readers. FIG. 8illustrates an exemplary layout of the data stored in track 2, whereintrack 2 is segmented into several distinct predetermined portions forencoding the various account identifying information. As shown, thefollowing table may be useful for determining the definitions of theinformation provided.

TABLE 2 Table of Field Codes for Track 2 SS = Start Sentinel “%” SS =Start Sentinel “;” PAN = Primary Acct. # (19 digits max) FS = FieldSeparator “=” Additional Data = Expiration Date, offset, encrypted PIN,etc. ES = End Sentinel “?” LRC = Longitudinal Redundancy Check

Track 3 is of similar description as Track 2. With the InternationalStandards Organization adoption of standard ISO/IEC 4909, track 3 of themagnetic stripe format was no longer used by the banking industry.However, other transaction devices including a magnetic stripe, such asdrivers licenses, use track 3, which may include both numeric only andalpha numeric characters. Track 3 is unique in that track 3 was intendedto have data read and WRITTEN on it. Cardholders would have accountinformation UPDATED right on the magnetic stripe. Unfortunately, track 3is almost an orphaned standard, since most readers currently inoperation are not configured to write data onto a magnetic stripe. Theoriginal design of track 3 was to control off-line ATM transactions byrecording transaction data for later reference by the bankinginstitution. But since ATMs are now on-line, the usage of track 3 hasbeen drastically reduced.

The most common technique used to encode data in magnetic stripe formatis known as Aiken Biphase, or ‘two-frequency coherent-phase encoding.’The American National Standards Institute (ANSI) and the InternationalStandards Organization (ISO) have chosen two standards to guide theencoding process. The ISO encoding protocol specifies that each oftracks 1, 2 and 3 must begin and end with a length of all Zero bits,called CLOCKING BITS. These are used to synch the self-clocking featureof bi-phase decoding. In addition, most transaction devices which usemagnetic stripe encoding protocol use either the ANSI/ISO ALPHA Dataformat or the ANSI/ISO BCD Data format. For example, track 1 istypically encoded in ANSI/ISO ALPHA Data format which is a 7 bit, 6 databits+1 parity bit (odd) format, where the data is read least significantbit first. The ANSI/ISO ALPHA format character set contains 64characters, 43 alphanumeric, 3 framing/field characters and 18control/special characters. On the other hand, tracks 2 and 3 aretypically encoded in ANSI/ISO BCD Data format, which is a 5 bit, 4 databits+1 parity bit(odd) format. The character set for the ANSI/ISO BCDData format character set contains 16 characters, 10 alphanumeric, 3framing/field characters and 3 control/special characters.

The present invention takes advantage of the traditional encodingformats in the generation of the proxy transaction account identifier.In general, the proxy transaction account identifier is formatted usingsimilar formatting as is used by the account provider such that theproxy account identifier emulates the account provider's preferredaccount identifier format. In the exemplary embodiment described herein,the proxy account identifier may be formatted using the encodingprotocol and standards discussed above. The proxy account identifier maybe encoded into “proxy tracks” 1, 2 and 3 according to the ISO/IEC 7811et al. standard. The three separate portions or tracks 1, 2 and 3 arecalled “proxy tracks” 1, 2 and 3, herein for consistency with magneticstripe terminology. However, the present invention contemplates that theproxy tracks are further segmented into sub-portions or sub-fields(“proxy fields”) which are undetectable (or substantially undetectable)to the reader or the merchant system. For example, the proxy transactionaccount identifier may include three proxy tracks 1, 2, 3 of themagnetic stripe data which are encoded with a plurality of proxy fieldswithout (or minimally) disturbing the manner in which the proxy tracksare received by the merchant system or reader. Each proxy field may haveany field length as determined by the account provider so long as theproxy track containing the proxy fields meets the character bit densityof the corresponding magnetic stripe track as defined by the magneticstripe standard used by the account provider. The proxy fields inaccordance with the present invention are shown as PF1-PFn shown inFIGS. 9 and 10.

Proxy tracks 1, 2, and 3 may be of similar description as traditionalmagnetic stripe tracks 1, 2, and 3 described above. As such, theinformation encoded in the proxy tracks ordinarily conforms to theAmerican National Standards Institute and International StandardsOrganization noted above. That is, proxy tracks may be encoded with datausing one of the ANSI/ISO ALPHA Data format or the ANSI/ISO BCD Dataformat.

The proxy tracks may be encoded with the relevant transaction accountidentifying data by the account provider. The encoding is preferablycompleted prior to populating the proxy account identifier into the fobdatabase 214. The proxy account identifier may be provided to the fobdatabase 214 prior to providing the fob 102 to an accountholder forusage. Alternatively, the fob 102 may add the proxy account identifierto the fob database 214 at a later date, for example, using the methoddescribed in the U.S. patent application Ser. No. 10/708,550 entitled“SYSTEMS AND METHODS FOR PROVIDING A RF TRANSACTION DEVICE OPERABLE TOSTORE MULTIPLE DISTINCT ACCOUNT,” which was filed on Mar. 10, 2004, andwhich is commonly owned by the assignee of the present invention and ishereby incorporated by reference.

The proxy account identifier is useful for securing the related accountidentifier, because only subparts or portions of the data sets encodedin the related account identifier are encoded in the proxy accountidentifier proxy tracks. The portions may be encrypted prior toproviding the portions to the proxy track using any method as desired bythe account provider. The portions of the account identifier which areencoded in the proxy tracks may be used by the account provider toregenerate the complete corresponding data set, for use in locating thecorresponding transaction account for use in transaction completion. Inthis context, a data set may be groups of information. For example, onedata set may be the account number, while anther data set may be theaccountholder name, while yet another data set may be the transactionaccount expiration date, while still another data set may be thetransaction account expiration date.

A more complete understanding of method for encoding the portions ofaccount identifier data into the proxy account identifier may beunderstood with reference to FIGS. 10, and 11, where FIG. 11 illustratesan exemplary method for encoding proxy account identifier track 1, whichmay be encoded using the ANSI/ISO ALPHA Data format.

An exemplary method for encoding the proxy tracks may begin with acustomer opening a transaction account with a transaction accountprovider (step 1102). In opening the account, the customer provides theaccount provider with personal information such as, for example, thecustomer's name, street address, city and state. In other embodiments,the fob 102 may include other personal information, such as, forexample, the customer's driver's license number, birth date, sex,height, weight, hair color, eye color, or the like.

Once the information is received, the account provider may open atransaction account and assign the transaction account a transactionaccount identifier and a transaction account expiration date oreffective date (step 1104). The transaction account identifier,effective date, expirations date, and any other information provided bythe customer or the account provider, which relates to the transactionaccount, may be stored on the provider system database such that eachpiece of information is correlated to the customer transaction accountidentifier (step 1106).

Ordinarily, the account provider may provide the customer with anaccount identifier associated with a transaction device using theinformation provided by the user and the information from the accountprovider. The account identifier may be in any format recognizable bythe entity receiving the information. For example, where the accountidentifier is provided to a fob 102, the account identifier isordinarily received by a reader 104 or merchant system 130.Consequently, the account identifier typically is configured in a formatrecognizable by the reader 104 or the merchant system 130.

In a banking context, the account identifier is formatted in accordancewith the ANSI/ISO encoding standard. As such, the associated proxyaccount identifier will also employ the ANSI/ISO encoding standard,except that, as noted, the proxy account identifier only encodesportions of the information data sets that are encoded in thetraditional account identifier.

For example, track 1 of the traditional account identifier is generallyreserved for encoding the account number, expiration date and name ofthe accountholder (e.g., “customer”). That is, the full and completedata set encoded in traditional track 1 may include all characters whichcomprise a full data set of the traditional track 1 information.However, in accordance with the present invention, the proxy track 1 mayonly have portions of the traditional track 1 data set encoded in theproxy track 1 location. As noted, FIG. 11 illustrates an exemplary proxytrack 1 layout, wherein the proxy fields (PF1-PFN) are shown.

Where the traditional track 1 may include a field PAN for encoding thetransaction account number, proxy track 1 may only encode apredetermined portion of the account number therein (step 1108). Thepredetermined portion of the account number may be stored in a proxyfield such as proxy field PF5. Thus, if the account number is asixteen-digit credit card account number, the proxy field PF5 may haveonly the first eight digits of the account number (or any eight digits),thereby freeing up the remaining eight digit positions located in proxyfield PF6 for use in storing alternate information. The account providermay then choose to encode any desired alternate information in theremaining digit positions at proxy field PF6 (step 1108). In oneexample, the account provider may encode authentication tag data,personal security data, customer health or demographic information orthe like in proxy field PF6 (step 1112). In similar manner as isdiscussed with the account number, only portions of the alternateinformation may be encoded in proxy track 1 at proxy field PF6.Otherwise, the proxy account identifier is populated into the fobdatabase 214.

The above process of encoding only portions of a data set may berepeated with respect to proxy track 2 and proxy track 3, if required(step 1116). Once the account provider encodes the desired informationin the available proxy track character fields, the account provider maypopulate the proxy account identifier into a transaction device for usein completing a transaction (step 1114). For example, where fob 102 isthe transaction device, the proxy account identifier may be populated onthe fob database 214.

Ordinarily, the proxy account number (e.g., a portion of the transactionaccount number) includes essential identifying information, such as, forexample, any information that is common to the account provider. Thecommon information (also called “common character,” herein) may includethe account provider routing number, or common source indicator such asthe character spaces reserved to indicate the identification of theissuing bank. Thus, where the proxy transaction account identifiercorresponds to an American Express account, the proxy transactionaccount identifier may include the common character number 3, encodedthe field location where such common character is ordinarily encoded intraditional magnetic stripe format.

FIG. 12 illustrates the encoding of which would ordinarily be done by anentity, such as, for example, MasterCard in track 2 format. FIG. 12shows the encoding of a MasterCard account number 3111 2222 3333 4444with expiration date 12/99 in traditional track 1 format. SinceMasterCard uses the number 3 to identify its transaction accounts, theproxy account identifier will also use the number 3 so that thereceiving system (e.g., reader 104 or merchant system 130, or accountprovider) further recognizes that the proxy account identifier is from aMasterCard transaction device. It should be noted that in this example,the “3” and the “101” may be common characters to all MasterCardtransaction accounts.

FIG. 13 shows the identical account number, 3111 2222 3333 4444, encodedin the proxy account identifier proxy field PF3, which is reserved foraccount number data. The PF3 may only store the first four digits andthe last four digits, or any combination which includes the commoncharacter of the issuing institution identifier the number 3. Thus, theremainder of the character locations (designated in PF4 by “*”) for thataccount number location PAN is left for the account provider to storeany information as desired.

Once the information is encoded in the transaction device (e.g., fob102), the fob 102 may be presented for transaction completion using anymethod described herein (step 1120). For example, the merchant system130 may receive the proxy transaction account identifier from the fob102 in similar manner as was discussed with reference to completing atransaction in FIG. 6. The merchant system recognizes the proxytransaction account identifier as referenced to a MasterCard accountnumber because of the common number 3 and processes the proxytransaction account identifier under business as usual standardsemployed for MasterCard accounts.

Once a merchant transaction request is received at the account providerlocation, the account provider may decode the proxy transaction accountidentifier and reassemble the information contained in the proxy fields(step 1122). The account provider may reassemble or reconstruct theinformation using one or more account provider algorithms. Thealgorithms may be specific to a particular proxy field, or the algorithmmay be operated on the entire proxy transaction account identifier. Thereassembled data may be used to reference the corresponding transactionaccount on the account provider database for use in completing thetransaction (step 1124). The account provider may then locate theappropriate corresponding account and satisfy the merchant transactionrequest under the account provider's business as usual standard (step1126).

As such, it can be readily seen that the present invention has the addedadvantage over the prior art of being able to store more information inthe same character spacing than is currently stored in a traditionaltrack 1 field F3. In addition, the information may be transmitted intraditional magnetic stripe format without the disadvantage of engaginga third party to configure the information in a merchant recognizableformat.

The preceding detailed description of exemplary embodiments of theinvention makes reference to the accompanying drawings, which show theexemplary embodiment by way of illustration. While these exemplaryembodiments are described in sufficient detail to enable those skilledin the art to practice the invention, it should be understood that otherembodiments may be realized and that logical and mechanical changes maybe made without departing from the spirit and scope of the invention.Thus, the preceding detailed description is presented for purposes ofillustration only and not of limitation, and the scope of the inventionis defined solely by the appended claims and their legal equivalentswhen properly read in light of the preceding description. For example,the steps recited in any of the method or process claims may be executedin any order and are not limited to the order presented.

1. A transaction device system comprising: an account identifierincluding a first account identifier portion and a second accountidentifier portion; a transaction device database including a proxyaccount identifier storage area operable for storing a proxy accountidentifier, said proxy account identifier including said first accountidentifier portion, wherein said proxy account identifier is provided toan account identifier provider system; said proxy account identifierstorage area including a first proxy account identifier storage area anda second proxy account identifier storage area, said second proxyaccount identifier storage area configured to store said first accountidentifier portion; and said account identifier provider systemconfigured for receiving said proxy account identifier including saidfirst account identifier portion, said account identifier providersystem operable to associate said first account identifier portion tosaid account identifier, said account identifier being associated with atransaction account, and said account identifier provider systemoperable to receive said first account identifier portion and provide acorresponding account identifier to an account identifier providerserver for transaction completion.
 2. The system of claim 1, whereinsaid account identifier provider system is operable to provide saidaccount identifier to said account identifier provider server inaccordance with said first account identifier portion.
 3. The system ofclaim 2, wherein said account identifier provider system is operable togenerate said second account identifier portion in accordance with apredetermined algorithm operated on said first account identifierportion, said account identifier provider system is operable to providesaid account identifier to said account identifier provider server inaccordance with said first account identifier portion and said generatedsecond account identifier portion.
 4. The system of claim 2, whereinsaid account identifier provider system further includes an accountidentifier provider database, said account identifier provider databaseoperable to store said account identifier, wherein said accountidentifier provider system is operable to locate said stored accountidentifier in accordance with a predetermined algorithm operated on saidfirst account identifier portion.
 5. The system of claim 2, wherein saidaccount identifier provider system further includes an accountidentifier provider database, said account identifier provider databaseoperable to store said second account identifier portion, wherein saidaccount identifier provider system is operable to locate said storedsecond account identifier portion in accordance with a predeterminedalgorithm operated on said first account identifier portion, saidaccount identifier provider system is operable to provide said accountidentifier to said account identifier provider server in accordance withsaid first account identifier portion and said located second accountidentifier portion.
 6. The system of claim 1, wherein said proxy accountidentifier is provided to a merchant system, said merchant system infurther communication with said account identifier provider system, saidmerchant system operable to provide said proxy account identifierincluding said first account identifier portion to said accountidentifier provider system.
 7. The system of claim 6, wherein said proxyaccount identifier is provided in a merchant system recognizable format.8. The system of claim 6, further comprising a transaction device readerin further communication with said merchant system, said transactiondevice reader operable to receive said proxy account identifier and toprovide said proxy account identifier to said merchant system.
 9. Thesystem of claim 7, wherein said proxy account identifier is inInternational Standards Organization (ISO) compatible magnetic stripeformat.
 10. The system of claim 7, wherein said proxy account identifierincludes said first account identifier portion in at least one track ofan ISO compatible magnetic stripe format.
 11. The system of claim 1,wherein said proxy account identifier including said first accountidentifier portion is provided to said account identifier providersystem in a contactless transmission medium.
 12. The system of claim 11,wherein said contactless transmission medium is radio frequency.
 13. Amethod, comprising: associating, by a computer-based system fortransmitting data for transaction completion in a payment system, afirst proxy account identifier portion with a transaction accountidentifier, said transaction device identifier including first andsecond transaction account identifier portions, wherein a transactiondevice is associated with a proxy account identifier, and wherein saidproxy account identifier has said first proxy account identifierportion; storing, by the computer-based system, said first transactionaccount identifier portion in said first proxy account identifierportion; and providing, by the computer-based system, said firsttransaction account identifier portion to a transaction account providerfor use in determining said transaction account identifier forcompleting a transaction.
 14. A method of claim 13, wherein said proxyaccount identifier is in International Standards Organization (ISO)compatible magnetic stripe format.
 15. A method of claim 13, whereinsaid proxy account identifier includes said first account identifierportion in at least one track of an ISO compatible magnetic stripeformat.
 16. An article of manufacture including a non-transitory,tangible computer readable medium having instructions stored thereonthat, in response to execution by a computer-based system fortransmitting data for transaction completion in a payment system, causethe computer-based system to perform operations comprising: associating,by the computer-based system, a first proxy account identifier portionwith a transaction account identifier, said transaction deviceidentifier including first and second transaction account identifierportions, wherein a transaction device is associated with a proxyaccount identifier, and wherein said proxy account identifier has saidfirst proxy account identifier portion; storing, by the computer-basedsystem, said first transaction account identifier portion in said firstproxy account identifier portion; and providing, by the computer-basedsystem, said first transaction account identifier portion to atransaction account provider for use in determining said transactionaccount identifier for completing a transaction.
 17. A method of claim16, wherein said proxy account identifier is in International StandardsOrganization (ISO) compatible magnetic stripe format.
 18. A method ofclaim 16, wherein said proxy account identifier includes said firstaccount identifier portion in at least one track of an ISO compatiblemagnetic stripe format.